Good news for home buyers: Real Estate Bill passed in both houses of Parliament

Real Estate Bill is touted as a major reform measure to regulate the vast real estate sector and bring order to it.

Congress vice-president Rahul Gandhi had told concerned home buyers that his party will support the bill.

The long awaited Real Estate Bill, which aims to protect the interests of buyers and bring more transparency to the sector, was passed in the Lok Sabha on Tuesday with the support of the Opposition. The bill will bring in a set of reform measures at a national level to ensure transparency for consumers.

Now, the Bill will be sent for the President's approval, after which it will become law.

The government had fast-tracked the proposal based on the renewed interest shown by Congress in getting the Real Estate (Regulation and Development) Bill cleared in Parliament.

Meanwhile, Congress vice-president Rahul Gandhi had told concerned home buyers that his party will support the bill.

This bill has been touted as a major reform measure to regulate the vast real estate sector and bring order to it.

Key details:

The Bill will prohibit unaccounted money from being pumped into the sector.

Around 70 per cent of the money has to be deposited in bank accounts through cheques.

The bill also proposes that a minimum of 70 per cent collections from buyers should be deposited in a separate escrow account to cover the cost of construction and land.

It will help establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover.

The Bill also provides for imprisonment of up to three years in the case of promoters and up to one year in the case of real estate agents and buyers or monetary penalties or both for any violation of orders of Appellate Tribunals.

Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities will have to dispose off complaints in 60 days while no time frame was indicated in earlier Bill, he said.